Everything You Need to Know About Section 179 This Year

Let’s talk tax code. If you're a small business, Section 179 might be the most underrated way to keep more cash in your business and less in the IRS’s pocket. Whether you're buying new gear, investing in software, or upgrading your workspace, this tax deduction could be your best friend this year.
So, here’s what you need to know—without the fine-print fatigue.
01) What is Section 179 (and why should you care)?
Section 179 lets your business deduct the full purchase price of qualifying equipment and software in the year you bought it (rather than spreading the deduction out over years through depreciation).
TL;DR: Buy it → Use it → Deduct it. All in the same tax year.
That’s big. It means you can invest in your business right now and write it off at the same time.
How do you claim it?
📑 You’ll need to file IRS Form 4562.
🛠️ You must use the equipment during the year—so buy and put it to work before December 31.
📆 Keep detailed records: invoices, proof of use, and a clear paper trail.
02) What qualifies for the deduction?
You can use Section 179 for:
- Computers, tablets, and office tech
- Business vehicles (with weight/class caveats)
- Furniture, machines, and equipment
- Software (off-the-shelf, not custom-built)
- Certain improvements to nonresidential buildings
Basically, if it helps your business run—and it’s tangible—you’re likely in the clear.
03) What are the 2025 limits?
For tax year 2025:
- Maximum Deduction: $1,220,000
- Spending Cap: $3,050,000
- Bonus Depreciation: 60% (in addition to Section 179, after you hit the limit)
If you spend more than the cap, your deduction starts to phase out dollar-for-dollar. So if you’re planning major upgrades, time your purchases strategically.
04) Why this matters for small businesses
For small businesses, cash flow is king. Section 179 is designed to give you more flexibility to invest in growth—without waiting years for tax relief.
Now’s the time to invest in what your business needs and let the tax code do some of the heavy lifting.
At Tento, we help businesses stay financially healthy—from accessing smart financing to monitoring business credit (and yes, that makes qualifying for deductions like this way easier).
Need financing to take advantage of Section 179?
→ Apply for Equipment Financing






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